The Audi A3 is a practical, compact five-door hatchback, but it feels up-market, like a scaled-down A4. Like most compact cars, the A3 is fuel-efficient and represents a good value. Yet it's also luxurious, with a premium interior. Underway, the A3 delivers excellent driving dynamics from superbly engineered powertrain, suspension and braking systems.

We like the A3 for its combination of open-road dynamism, long-haul friendliness, and around-town usefulness. The A3 is an example of the sensibilities in design and use of materials that characteristic of Audi.

Two engines are available. The Audi A3 2.0 TFSI is powered by a turbocharged 2.0-liter four-cylinder engine, rated at 200 horsepower and 207 pound-feet of torque, which drives either the front wheels, or has all-wheel-drive with the quattro version. With front-wheel drive the A3 is available with either a 6-speed manual transmission or a 6-speed automatic S tronic dual-clutch transmission with electro-hydraulic control. The all-wheel-drive Audi A3 quattro comes only with the S tronic automatic. With the manual transmission, the gas-powered A3 2.0 TFSI is EPA-rated at 21 mpg City, 30 mpg Highway.

The A3 2.0 TDI clean diesel makes 140 horsepower and 236 pound-feet of torque. It is available only with front-wheel drive and the S tronic automatic transmission. With all that torque it has no problem moving the A3 down the road or up the hills, even with it fully loaded. Perhaps most significantly, the A3 2.0 TDI diesel is EPA-rated at 30 mpg City and a remarkable 42 mpg Highway, and like the VW Jetta and Golf does not require any fuel additive.

Changes for 2011 are minimal and primarily cosmetic. 2011 Audi A3 Premium Plus and Titanium packages get new wheel designs, two blues join the palette, and door handles and the cabin get chrome accents.

We found the A3 models offer good balance and excellent throttle response that make for a convincing sports-sedan experience when the road is right. Inside, the A3 is roomy and versatile, blending pleasing materials with logical controls and highly legible readouts.

Model Lineup

Walk Around

The Audi A3 is understated and elegant. Its masterly crafted panels fit just right, the paint is exquisite, and there's an overall expensive look to it that contradicts the usual expectations for a small, affordable car.

A compact five-door hatchback can't be a car designer's favorite project. There's only so much that can be done to fit all those doors on a short wheelbase. But Audi stylists have done a good job of it. In profile, the sweep of the roofline is supported by a strong shoulder line that joins front, side and rear of the car and leads the eye to the strong rear end, all of which makes it appear as though the A3 is launching forward, springing into action.

The front end is particularly distinctive, again projecting a sense of forward motion. Audi's current family-look single-frame grille is flanked by canted headlamp clusters (forming a determined frown) and prominent lower intake grilles. It's an aggressive nose, but it doesn't overly dominate the design, as the eye gets drawn along the distinct shoulder line, which also forms a visual tension with the sloping roof; while bodyside molding and deeply creased lower side panels break up the large door areas into pieces of a well-crafted puzzle.

Wraparound taillamp clusters accentuate the broad sweep of the rear. They also give the shoulder line a take-off point that makes it look like a small spoiler has been integrated into the hatch just below the window line. Very sporty, as is the pair of bright exhaust tips not so bashfully protruding from below the bumper.

Interior

Inside, the Audi A3 feels upscale. It offers a fine combination of utility and comfort, and exudes a high level of workmanship. Most materials are pleasing, and the cockpit is a model of applied ergonomic science, with logical placement of controls and highly legible read-outs.

To evoke the feel of driving a sports car, the seating position is placed low in relation to the high and wide console. We found the seats to be very nice, and legroom adequate, both front and rear. The back seats are quite comfortable, more supportive than the front seats on many compacts, but the slope of the roof means tall passengers may find rear headroom compromised.

The point of a five-door hatchback, of course, is the versatility of the interior. For starters, the luggage area can be increased by folding flat the split rear seatbacks. Indeed, the rear seats flip down easily. This does not result in a perfectly flat cargo floor, but this isn't usually an issue. An accessory roof rack is available in a choice of several different configurations depending on the intended use.

The wide doors make it easy to climb in and out. But Audi's shallow flush-fitting door handles aren't as easy to grab as the handles on BMWs and some other cars, and can snap away from your fingers when in a hurry. The seatbelt alarm goes off whenever the car is running, annoying when sitting in a parking lot. And we found it a bit too easy to hit the panic button on the remote key fob.

The Open Sky dual sunroof option is very cool, although only the front of the two glass panels opens. Both have retractable sunshades, but the mesh covers let too much light in for our taste. We believe in letting the sun shine in, but not on glaring days when it distracts from driving or turns a parked cabin into an oven.

Driving Impressions

The Audi A3 suspension is refined beyond the car's price or class and provides both sporty handling and a refined ride quality. And the quattro all-wheel-drive system is ideal both for owners who must brave the ice and snow of winter and also for those who like to get the most out of their machines when the roads are twisty and dry. The intercooled 2.0-liter turbocharged four-cylinder is everything a small displacement performance engine should be, while the 2.0-liter diesel delivers a level of torque that is remarkable for a car in this category.

These elements all contribute to a persona that begs for tight, winding mountain roads, thrives in the slice-and-dice of urban traffic, and quietly relieves the tedium of commuter slogs.

The 2.0 TFSI turbo engine's 200 horsepower is underscored by 207 pound-feet of torque, the latter delivered across a wide sweep of the tach needle from 1800 to 5000 rpm, making the two-liter feel as though it had a bunch more cubic inches grafted onto it somewhere. Yet, it's remarkably easy on fuel, with EPA city/highway estimates of 21/30 mpg with the manual transmission and 22/28 with the S tronic automatic.

There's little turbo lag, and the engine revs smoothly yet quickly through its powerband. Just push your right foot down and let the 2.0T deliver. Audi says the A3 2.0T sprints from zero to 60 mph in 6.7 seconds, but the raw number doesn't begin to do justice to the engine's throttle response and the chassis' willingness to get from here to there. Torque is ever ready, and the engine is quite happy to reach 6000 rpm over and over again.

But if it's fuel economy you want, you can't go wrong with the 2.0-liter TDI turbocharged clean diesel. The TDI diesel gets an EPA-estimated 42 mpg Highway and has a fuel tank of slightly over 14 gallons, which computes to a theoretical maximum cruising distance of about 600 miles. The TDI diesel produces very useful torque (236 lb-ft) and Audi claims it can accelerate from 0 to 60 mph in about 9 seconds; in real-world driving it is quicker than most cars with similar 0-60 stats. The tailpipes are cleaner than the gas-engine cars, and you notice the different noise only at idle.

The transmission choices illustrate Audi's industry-leading technology in transforming engine torque into rolling power. You can't go wrong with either the standard 6-speed manual or the paddle/lever-shifted S tronic automatic. The swiftness of choosing the correct gear with the S tronic feels like magic and makes every driver almost feel like an accomplished race car driver.

Surefooted agility, even with only the two front wheels driving the car, comes easily to the A3, thanks in large measure to its four-link rear suspension. Compactness, low weight and superior handling are all expected benefits of such a refined suspension. The multiple links result in better lateral rigidity for crisper handling and a comfortable ride. It's very good, and is one hallmark of an engineering department at full strength.

What that all means is that you'll be hard-pressed to find a better-balanced front-drive car. Nor will you find many compacts that make such a convincing sports sedan when the road is right.

The Audi A3 is a high-quality car that offers premium handling and safety, roominess and practicality, yet is still easy to park and, with either engine, is easy on fuel. Five-door hatchbacks are very popular in Europe, but much less so in America. Those who are comfortable with its styling should find happiness in the Audi A3 Sportback. With its combination of performance, capabilities, style, quality of fit and finish, luxury, ride, handling and fuel efficiency, it is a keeper.

G.R. Whale and Greg Brown contributed to this NewCarTestDrive.com report.